Former PUC chair says solar industry pursing narrow self-interest in opposing NextEra buyout

Remember Mina Morita, the former 7-term state representative from Kauai who went on to chair the Public Utilities Commission from 2011 until early this year and push the PUC in positive directions?

Henry Curtis described her career in a post on his Ililani Media blog in January 2014:

She was elected to the state House in 1996 where she served seven terms, six as Chair of the House Committee on Energy and Environmental Protection.

For the past three years she has served as Chair of the Hawai’i Public Utilities Commission (PUC).

Representative Mina Morita was instrumental in passing major energy legislation, including net energy metering, renewable portfolio standards, energy efficiency portfolio standards, greenhouse gas emission reduction targets and dedicated funding for energy and food security programs through a carbon tax on petroleum products.

Clearly, she has been a key participant in expanding Hawaii’s shift to renewable energy sources, and no shill for the energy corporations.

So I was quite interested to stumble across her new blog, Mina Morita Energy Dynamics, which is highly critical of the solar industry’s aggressive attacks on the proposed Hawaiian Electric-NextEra merger.

Here’s what Morita had to say a couple of days ago about The Alliance for Solar Choice: “Lurking in the background, purely to protect its own self interest and increase its market share, its motivation is a bigger threat to Hawaii’s electrical system” than NextEra.

In another post in early June, she wrote:

First of all, let me clarify – I am neither for or against the merger nor am I for or against rooftop solar or distributed generation. However, I am pragmatic and concerned that people are reacting emotionally and taking positions and making decisions that may not be cost-effective and provide only short-term gains for a few. The guerrilla tactics being used by these two entities through the press and social media only detract from real issues, the technical and economic challenges that Hawaii’s electric systems face in transforming a system to benefit all.

Are TASC and KULOLO (Keep Our Utilities Locally Owned and Locally Operated) acting in the public interest for the public good? I’m not sure, but it sure looks and smells like corporate business as usual to me. With the Sierra Club as the “local” front man, it’s just a move to increase rooftop pv market share and a promotion of self-interest wrapped up as democratization of power generation. I cannot help but feel that Hawaii is being used as the poster child to preserve net metering programs and what happens here will influence and affect these companies’ profitability nationwide thus their active interest, concern and the distractions.

The post then runs through the founding members of TASC and ends with this observation:

The local effort to stop the big corporate takeover isn’t so “local.” And if you think local ownership is the panacea you are living in la-la land. Sorry to be so harsh but this lack of understanding of what is happening to our electric system is serious and cannot be left to the un- and ill- informed.

It seems to me that hers is a voice that we need to carefully listen to and fully consider.


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8 thoughts on “Former PUC chair says solar industry pursing narrow self-interest in opposing NextEra buyout

  1. t

    “The local effort to stop the big corporate takeover isn’t so “local.” And if you think local ownership is the panacea you are living in la-la land. Sorry to be so harsh but this lack of understanding of what is happening to our electric system is serious and cannot be left to the un- and ill- informed.”

    she took the words from my fingertips. “local” in most if not all countries often means “disconnected from the rest of the planet and jumping straight to emotional judgment.”

    Reply
  2. Wil

    Mina is both experienced and wise. She was an excellent representative for Kauai in her many years in the legislature and always mindful of the big picture–that being what benefited everyone–what was best for Hawaii’s people.
    When she speaks, I listen, because I know it is backed up by facts and uncommon (and very welcome) savvy.

    Reply
  3. Bob Jones

    Her blatant misuse of her Hanalei property for personal gain loses her all credibility with me. I now consider her “up for sale.”

    Reply
  4. Allen N.

    As a legislator, Mina Morita was a strong proponent of the mandate to blend 10% ethanol into the gasoline sold here, under the misguided notion that this “cart-before-the-horse” mandate would spur local ethanol production and reduce the price of gas. Nearly ten years later, the mandate is set to be repealed, totally failing both of the aforementioned goals.

    Morita may be fascinated by the topic of alternative energy and have the sincerest of intentions. But that doesn’t mean that her ideas and theories automatically translate into sound policies that benefit the public in the “real world.”

    Reply
  5. anthony aalto

    Mina Morita spends an unreasonable amount of time attacking a sponsor of KULOLO (Keep Utilities Locally Owned and Locally Operated), instead of addressing the underlying issues and recognizing the other sponsors and thousands of individuals who’ve signed on.

    To suggest that the Sierra Club of Hawaii is a “front” for any organization is silly. It is false. It’s baseless speculation and it is unbecoming of Mina Morita.

    It is as irresponsible as if we were to suggest that Mina is unduly close to HECO’s point of view because of her friendship with HEI CEO Connie Lau, or that Mina has used her friendship with Senator Roz Baker to try to kill pro-PV legislation. Those are rumors that have long circulated in this town, but for which I have seen no evidence. So I refrain from saying that Mina is a front for HECO or NextEra.

    The Sierra Club’s highest priority is simple: to wean humankind off fossil fuels before our climate is changed so substantially that it threatens our civilization – a real danger that is swiftly looming. We have to shift to alternative energy sources as rapidly as possible.

    Rooftop solar has already proven that it can be installed very fast. If the GEMS program were activated as intended, it would allow people of all income strata to afford the benefits of PV. If we could install a smart grid and storage, we could make huge strides in a very short period of time. However a rapid acceleration of distributed generation would undermine the vertically integrated monopoly utility model that is HECO (and NextEra’s) bread and butter.

    NextEra has killed distributed generation and rooftop solar in Florida. NextEra has just announced that it intends to invest $500,000,000 every year in fracking for methane. It is clear that NextEra wants to shift Hawaii’s electricity generation to substantial amounts of LNG. Converting our power stations to burn LNG would be great for HECO/NextEra’s bottom line. But it would condemn Hawaii to remain dependent on a dirty imported fossil fuel for decades to come.

    If you analyze the full lifecycle of LNG, you find that it has significantly greater global warming impacts than coal. Why would HECO/NextEra stick to that model? Because they are publicly traded corporations with a fiduciary obligation to make profits for their stockholders. At a time when the PUC is being required to consider the implications of allowing HECO to be gobbled up by a for-profit mainland corporation headquartered 4600 miles away, does it not make sense to also consider changing the ownership model to one that is not-for-profit, cooperatively or municipally owned? The Sierra Club has not taken a position in favor of either idea, we are simply suggesting that these are possible alternatives that the PUC should consider.

    Reply
  6. zzzzzz

    “nor am I for or against rooftop solar or distributed generation. ”

    This seems an odd statement from an environmentalist. Perhaps she is not one.

    Reply
  7. compare and decode

    An op-ed from Mina Morita:

    http://www.greentechmedia.com/articles/read/Its-Time-to-End-Net-Energy-Metering-in-Hawaii

    The stratospheric growth in the adoption of rooftop solar electric systems in Hawaii has been driven, to a great extent, by the availability of net energy metering. NEM allows homeowners and business owners with photovoltaic systems to receive full retail credit for surplus power fed back into the utility grid to offset their electricity costs.

    We believe now is the time to bring the NEM program to a close and transition to a more fair and equitable rate structure.

    In 2001, when Hawaii’s NEM measure was passed, the price of PV was two to three times today’s cost. To assist in carrying out the state’s energy objectives, PV businesses needed a jumpstart in the form of a preferential tariff to promote and expand the use of this important site-based renewable energy source to homeowners and businesses.

    It’s now time for PV to stand on its own. The local Hawaiian PV industry and almost 60,000 ratepayers across the state who were fortunate enough to install these ratepayer- and public-subsidized systems through NEM and federal and state tax credits need to stop protecting their own self-interest and think about how to advance an electricity system to benefit all.

    One of the downsides of NEM which is not mentioned in Morita’s op-ed above is that costs for maintaining the grid shift entirely to the rest of us who don’t have solar panels, even while those who have solar panels (subsidized by NEM) use the grid disproportionately (to buy electricity from and sell it to the utility).

    http://www.forbes.com/sites/jamesconca/2014/11/28/net-energy-metering-are-we-capitalists-or-what/

    The adverse effects are becoming visible, however. A report issued last yearby the California Public Utilities Commission found that non-solar customers in the state face over $1 billion annually in higher costs because of net metering. In a state with a GDP of over a trillion dollars, that may not seem like a lot, and the pain is quite distributed over the other 30 million people.

    Unfortunately, net metering shifts these grid costs from the generally high-income homeowners, that can afford rooftop solar, to non-DG-customers through higher electricity bills. These are often low-income families that can least afford an increase in their monthly bill.

    As Lisa Wood of the Edison Foundation puts it, “[We need] to recognize the value of these grid services and to develop a methodology for the DG customer to pay for using them.” When normal consumers pay their electric bill, part of the bill is for the electricity they actually used, but the other part goes to maintaining the grid, referred to as grid services.

    On the other hand, this concern for “fairness” is also the point of view of the utility industry. Up until recently, it has never, ever voiced any concern for the less advantaged members of society.

    Here are the members of the Edison Foundation:

    http://www.edisonfoundation.net/iei/about/Pages/UtilityMembers.aspx

    Interestingly, the comments under Morita’s article are at least as informative as her article.

    Some of the best comments are by Sonja, an engineer on Kauai. Here is a collation of some of her comments:

    I’m on Kauai, the part of Hawaii where they tested the end of net metering “Schedule Q”. The PUC (then headed by article author Mina Morita) gave our utility KIUC the freedom to adjust the rates they pay for solar, as they see fit. They call it avoided cost, it’s between 50% (22c 9/14) and 33% (11c, 2/15) of retail electricity, they pay us what they’d pay Chevron for the oil.

    Kauai always had the highest electricity prices in the state. Schedule Q [net metering] did not change this in the least [NEM neither contributed to or lowered the high cost of electricity on Kauai].

    Still, we who invested hard-earned money into living green and sustainable are being verbally attacked by Mina Morita’s friends and fans, who believe they pay for our “free lunch”. A former friend seriously told me to get off the grid: if I could afford PV, I should also invest in batteries and stop making the poor people pay for my electricity.

    I’m really not advocating a free ride for DG, but without any time-of-use metering, any oversight about paid rates (the utility is not factoring in significant costs into the “avoided cost” calculation) blaming the fractional DG (2.2%) really doesn’t seem right.

    It’s very hard to get data on time-of-use here on Kauai. Our utility claims they have too much electricity on the grid during the daytime as solar provides close to or even more than 100% and propose curtailment – disconnecting individual rooftop PV owners (rooftop 2.2% of the total electricity, KIUC solar 12%, other large solar 4%). I don’t quite believe that they really have too much daytime energy already, but if it was true they should really make daytime electricity cheaper, and nighttime more expensive as that would shift consuming patterns.

    I saw that NREL inverter study. It really made HECO and PUC officials and their refusals to connect existing PV to the grid look foolish. Sadly, they immediately found a different solution to their problems of lost revenue, by switching to plan B and killing DG – rooftop PV by taking away incentives, as rates adjustable at utilities will make individual investments into sustainability way too risky.

    I care about this planet, the environment, and to keep some of nature intact for our kids. I read and speak German and have access to information how countries who are serious about 100% renewable handle issues like grid stability and reserve. KIUC is a touchstone coop, and controlled by elected board-politicians – corrupt, and financially able to be re-elected.

    How do you feel about subsidizing HECO shareholders who saw a 26% return on their investment in the last 12 months?

    Total HEI revenues last quarter were $637.9 million. If you adjust for the American Savings bank that goes down from 35c per share to 31c per share. I’m really happy about the decoupling though.

    The DG loss that Mina Morita and HECO are talking about is $53 million. It was stated as “total lost contribution…” and it’s a yearly not a quarterly number. (I have not yet figured out how they arrived at the number, and the PUC’s docket search is not working. If you get it to work look it up, 2014-0192)

    Awesome comments in terms of information provided. Thank you “Sonja”.

    So it’s all very complicated and troubling.

    The strongest advocates for NEM are the companies that sell solar panels.

    Those who argue most passionately that this is unfair to the poor are the utilities who historically have had zero interest in anything but their own profits.

    And the energy cooperative on Kauai might not be so perfect after all.

    In other words, it’s human nature all over again.

    Reply

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